lululemon Cheer Station - New York Marathon lululemon educators cheer on thousands of New York Marathon runners at the lululemon cheer station just past the 21 mile marker in Harlem. (Photo: Business Wire)

For the fourth quarter ended January 30, 2011:

Net revenue for the quarter increased 53% to $245.4 million from
$160.6 million in the fourth quarter of fiscal 2009.

Comparable stores sales for the fourth quarter increased by 28% on a
constant dollar basis.

Direct to consumer revenue increased 152% to $24.6 million, or 10% of
total Company sales, in the fourth quarter of fiscal 2010, from 6% of
total revenue in the same period last year.

Gross profit for the quarter increased by 66% to $143.5 million, and
as a percentage of net revenue gross profit increased to 58.5% for the
quarter from 53.9% in the fourth quarter of fiscal 2009.

Income from operations for the quarter increased by 72% to $71.3
million, and as a percentage of net revenue was 29.1% compared to
25.8% of net revenue in the fourth quarter of fiscal 2009.

The tax rate for the quarter was 23.5% compared to 31.4% a year ago,
after an adjustment of $8.9 million reversing deferred tax liabilities
recorded in Q1 through Q3 of fiscal 2010. This adjustment resulted
from a revision to managements plans for repatriation of unremitted
earnings of the Canadian operating subsidiary. Normalized for this
adjustment, the tax rate for the quarter was 35.9%.

Diluted earnings per share for the quarter were $0.76 on net income of
$54.8 million, compared to diluted earnings per share of $0.40 on net
income of $28.5 million in the fourth quarter of fiscal 2009.
Normalized for the tax adjustment, diluted earnings per share for the
quarter were $0.64.

For the fiscal year ended January 30, 2011:

Net revenue for the fiscal year increased 57% to $711.7 million from
$452.9 million in fiscal 2009.

Comparable stores sales for fiscal 2010 increased by 30% on a constant
dollar basis, resulting in a record $1,726 sales per square foot as at
January 30, 2011.

Direct to consumer revenue increased 214% to $57.3 million, or 8% of
total Company sales, in fiscal 2010, from 4% of total revenue in
fiscal 2009.

Gross profit for the fiscal year increased by 77% to $394.9 million
from $223.1 million in fiscal 2009. As a percentage of net revenue,
gross profit increased to 55.5% for fiscal 2010 from 49.3% in fiscal
2009.

Income from operations increased by 108% to $180.4 million, and as a
percentage of net revenue was 25.3% compared to 19.1% of net revenue
in fiscal 2009.

The tax rate for fiscal 2010 was 33.3% compared to 32.8% for fiscal
2009.

Diluted earnings per share in fiscal 2010 increased 106% to $1.69 on
net income of $121.8 million, compared to diluted earnings per share
of $0.82 on net income of $58.3 million in fiscal 2009.

The Company ended fiscal 2010 with $316.3 million in cash and cash
equivalents compared to $159.6 million at the end of fiscal 2009.
Inventory at the end of fiscal 2010 totaled $57.5 million compared to
$44.1 million at the end of fiscal 2009. The Company ended the quarter
with 137 stores in North America and Australia.

Christine Day, lululemon's CEO, stated: "We ended one of the best years
in lululemon's history with strong Q4 results that extended the
consistent sales growth and margin expansion that we enjoyed for each
quarter of 2010. The exceptionally strong sell through of our Q4 product
line leaves us with short term unmet demand in the first quarter due to
a low inventory position. However, the strength of our business model
and growing guest demand for our product give us the opportunity to
accelerate our store and e-commerce channel growth in 2011 and to
establish ourselves as the number one women's athletic wear brand. While
we will see some cost pressures in 2011, we are confident in our ability
to maintain our business model through disciplined management, operating
efficiencies and leverage on higher sales."

Updated Outlook

For the first quarter of fiscal 2011, we expect net revenue to be in the
range of $175 million to $180 million based on a comparable-store sales
percentage increase in the low double digits on a constant-dollar basis.
Diluted earnings per share are expected to be in the range of $0.36 to
$0.38 for the quarter. This assumes 72.4 million diluted
weighted-average shares outstanding and a 36% tax rate.

For fiscal 2011, we expect net revenue to be in the range of $885
million to $900 million and diluted earnings per share are expected to
be in the range of $1.90 to $2.00 for the full year. This assumes a tax
rate of 36% and 72.6 million diluted weighted-average shares outstanding.

Conference Call Information

A conference call to discuss fiscal 2010 results is scheduled for today,
March 17, 2011, at 9:00 am Eastern Time. Those interested in
participating in the call are invited to dial (877) 303-3203
approximately 10 minutes prior to the start of the call. The conference
call will also be webcast live at www.lululemon.com.
The webcast will be accessible on our website for approximately 30 days
after the call.

About lululemon athletica inc.

lululemon athletica (NASDAQ:LULU; TSX:LLL) is a yoga-inspired athletic
apparel company that creates components for people to live longer,
healthier and more fun lives. By producing products that help keep
people active and stress free, lululemon believes that the world will be
a better place. Setting the bar in technical fabrics and functional
designs, lululemon works with yogis and athletes in local communities
for continuous research and product feedback. For more information,
visit www.lululemon.com.

Non-GAAP Financial Measure

Constant-dollar net revenue changes, which exclude the impact of changes
in foreign exchange rates, is not a United States Generally Accepted
Accounting Principle ("GAAP") performance measure. We provide
constant-dollar net revenue changes because we use the measure to
understand the underlying growth rate of revenue excluding the impact on
a quarter-by-quarter basis of changes in foreign exchange rates, which
are not under management's direct control. We believe that disclosing
net revenue changes on a constant-dollar basis is useful to investors
because it enables them to better understand the level of growth of our
business.

Forward-Looking Statements:

This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934 that involve risks, uncertainties
and assumptions, such as statements regarding our future financial
condition or results of operations, our prospects and strategies for
future growth, the development and introduction of new products, and the
implementation of our marketing and branding strategies. In many cases,
you can identify forward-looking statements by terms such as "may,"
"will," "should," "expects," "plans," "anticipates," "outlook,"
"believes," "intends," "estimates," "predicts," "potential" or the
negative of these terms or other comparable terminology. These
forward-looking statements are based on management's current
expectations but they involve a number of risks and uncertainties.
Actual results and the timing of events could differ materially from
those anticipated in the forward-looking statements as a result of risks
and uncertainties, which include, without limitation: the possibility
that we may not be able to manage operations at our current size or
manage growth effectively; risks that consumer spending may continue to
decline and that U.S. and global macroeconomic conditions may worsen;
risks that the cost of raw materials could increase our cost of goods
sold and that we will not be successful in our efforts to protect our
business from the volatility of the market price for cotton and other
raw materials; risks that increasing labor costs and other factors
associated with the manufacture of our products in China could increase
our costs to produce our products; risks that we may not be able to
obtain quality products on a timely basis or in sufficient quantity from
our third-party suppliers to meet the demand for our products; the
possibility that levels of comparable-store sales or average sales per
square foot will decline; the possibility that we may not be able to
successfully expand in the United States and other new markets;
increased competition causing us to reduce the prices of our products or
to increase significantly our marketing efforts in order to avoid losing
market share; the possibility that we may not be able to continually
innovate and provide our consumers with improved products; the
possibility that our suppliers or manufacturers may not produce or
deliver our products in a timely or cost-effective manner; and other
risk factors detailed in our Annual Report on Form 10-K for the fiscal
year ended January 30, 2011 filed with the Securities and Exchange
Commission and available at www.sec.gov.
You are urged to consider these factors carefully in evaluating the
forward-looking statements contained herein and are cautioned not to
place undue reliance on such forward-looking statements, which are
qualified in their entirety by these cautionary statements. The
forward-looking statements made herein speak only as of the date of this
press release and the company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events or
circumstances.

2 Number of stores opened during fiscal 2010 are
branded lululemon athletica and include nine locations repurchased
from our Australian franchise operator and one reacquired
franchise in Canada, in the second quarter.

3 Gross square feet added during the quarter includes
net square foot additions for corporate-owned stores which have
been renovated or relocated in the quarter.